New housing: building permits are expected to pick up again in May 2026, despite a persistent crisis

The Data and Statistical Studies Service (SDES), which corrects its statistics for seasonal variations and working days, specifies that "This development follows a sharp decline in April (-31,3%), after a comparable increase in March (+33,8%)."

Building permits are increasing, but have not yet reached the peak of March.

Despite this recovery, the level reached in May remains lower than that of March 2026, when 41.000 building permits were issued, a level not seen since August 2022.

The SDES nevertheless highlights an improvement in the trend at the beginning of the year: "Over the first five months of 2026, the average monthly level of authorizations is 8,1% higher than that observed in 2025".

Multi-family housing is driving the increase in building permits.

The increase in permits is mainly driven by multi-family housing. In May, permits granted for multi-family buildings increased by 37,9%, reaching 22.162 units, after a decline of 3,6% in April.

Building permits for individual houses are also increasing, but more moderately, with a rise of 4,8%, to 12.670 dwellings.

Over the past twelve months, however, the volume of permits remains below historical levels. The SDES indicates that "From June 2025 to May 2026, 384.935 housing units were authorized for construction, which is 5,7% less than the average of the previous five years."

Housing starts remain at a low level

Construction starts, which reflect the number of homes actually being built, show a slight increase. In May, 27.115 homes were started, representing a 1,1% rise compared to the previous month.

Over the past twelve months, 295.250 housing units have been started, a level that remains 13% below the average observed over the past five years.

The ministry points out, however, that these results remain provisional, as the rate of reporting is still incomplete, with less than 40% of the data available concerning construction starts.

The new construction sector continues to face a persistent crisis

Despite this rebound in building permits, the new construction market continues to operate in a challenging environment. For the past three years, the sector has been hampered by rising construction costs and increasing interest rates, which have discouraged many households from purchasing property.

The disappearance of support mechanisms for rental investment, in particular the end of the Pinel tax scheme in 2025, has also led to a decline in investments by individuals.

To revive housing production, the government has presented a Housing Recovery Bill with the objective of building 400.000 new homes per year, thanks to measures to simplify procedures and a tax incentive designed to support rental investment.

Illustrative image of the article via Depositphotos.com.